January 16, 2024: A Raucous Caucus ⚔️🗳️
JPEG'd hack reimbursement proposal turns contentious, plus full roundup of Curve governance
What happens when democracy turns into a full contact sport?
JPEG’d
Following last year’s hack, Curve provided restitution for users in three of the four exploited pools. However, JPEG’d charted a different path, hunting down the perpetrator on their own.
This past week, a furious debate has erupted over potential compensation for victims. By way of background, the JPEG’d team lost about 1375 ETH worth of JPEG tokens. The team received 90% of funds and mostly provided restitution to users:
JPEG’d is requesting 6.042MM $CRV tokens from the Community Grants council to cover the shortfall.
The great Wormhole Oracle provided a spreadsheet explaining the math behind the request.
As you might expect, any request for a lot of money will draw extra scrutiny. Convex heavyweight Winthorpe argued the proposal appeared to be “in bad faith.”
Penniless Wassie of JPEG’d rebuts this, pointing to their alignment with Curve throughout the incident.
Users on the forum are split. For example, 0xtutti considers the proposal fair.
While user Truth debates this take.
It’s a contentious discussion, and we expect that the vote will be followed closely. Head to the forums and drop your opinion!
Active Votes
A whopping 10 votes are active on Curve at the moment.
pyUSD
Frax has set up a handful of pools with pyUSD, and is pushing to make them fundamental within the Curve ecosystem. They are hosting votes to set pools as base pools within factories. A bit more background on pyUSD in the governance forum.
Frax/pyUSD
Frax/pyUSD already has a whopping $135MM in liquidity, and is on its way to becoming a base pair.
3payLlama:
3payLlama (pyUSD / crvUSD / Frax) is newer and has scarcely been seeded. A pair of votes are up to approve the gauge and add it as a base pair in the factory.
Gauge Vote:
Base Pair:
Arbitrum
A pair of pools on Arbitrum are pursuing gauge votes.
TriCRV Arbitrum
Pools containing $CRV have been historically important, given the utility in creating onchain liquidity for our favorite down-only token.
A vote is up to hook up streaming rewards to the Arbitrum TriCRV pool (crvUSD / ARB / CRV). This means it would no longer rely on splashes of $crvUSD from Mich playing benefactor:
Votes:
Lumi Finance
We don’t know a lot about Lumi Finance, but their Arbitrum pool has already been fairly successful ($8MM TVL).
While we haven’t been able to find any posts on the governance forum, their public account suggests they’ve been diligently chopping wood lately.
Vote for a gauge is up:
Housekeeping
A handful of important work to maintain existing pools and architecture
LayerZero Bridge Infrastructure
A variety of Curve’s cross-chain infrastructure has been in disarray for some time, but a new vote aims to shore this up by revamping the LayerZero bridge infrastructure
TriCrypto Parameters
We talk a lot about Curve TriCrypto parameter changes, which is among the most interesting work happening behind the scenes:
A vote is up to adjust parameters on TricryptoLLAMA and TricryptoUSDT
Kill Gauges
The aforementioned hero we don’t deserve, Wormhole Oracle, does a lot of work identifying deprecated pools and shutting off their flow of rewards. Far more detail in the governance forum.
eUSD
A pair of votes related to eUSD are effectively closed. Barring any unusual surprises, expect two new gauges for the eUSD pairings with ascendant stablecoins crvUSD and mkUSD. The votes were a bit more contentious than usual, but still passed overwhelmingly.
crvUSD
mkUSD
Other Recent Votes
BobrCRV
A fancoin for the Curve ecosystem, which promised an airdrop to people who asked late last year. More info in the governance forum:
Overnight USD+
Overnight Finance describes itself as “an asset management protocol offering passive yield products based on delta-neutral strategies.” The newest votes did not have a forum discussion, but more info is available from their first proposal this past summer.
The votes were successful, and a pair of gauges have been approved for a pair of pools:
TriCryptoGHO
Decentralized stablecoins continue to grow their infrastructure around DeFi. In this case, Aave’s $GHO pursued a gauge vote for their TricryptoGHO ($GHO, $wBTC, $wstETH).
More details on the vote from the governance forum.
However, the vote fell short of quorum and will need to be resubmitted.
Arbitrum Grant
The process of hooking up the Curve Arbitrum grant to pools is proceeding apace.
The most recent vote came back favorably.